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Recruitment, Relocation and Retention Incentives

Yes. Under 5 CFR 575.205(a)(1), an agency may pay a relocation incentive to an employee who must relocate to a different geographic area either permanently or temporarily, assuming all other conditions are met.

The service agreement must specify the commencement and termination dates of the service period, the amount of the incentive, the method and timing of incentive payments, the amount of each incentive payment, the conditions under which an agreement will be terminated by the agency, any agency or employee obligations if a service agreement is terminated (including the conditions under which the employee must repay an incentive or under which the agency must make additional payments for partially completed service), and any other terms and conditions for receiving and retaining a recruitment or relocation incentive. (See 5 CFR 575.110 and 575.210.)

Whether the incentive will be paid in installments or in a lump-sum payment upon completion of the service period and, if paid in installments, whether any installment payments will be paid at less than the full retention incentive percentage rate established for the employee, with the accrued but unpaid incentive payment being paid in a lump sum upon completion of the full service period;

The timing of incentive payments;

The conditions under which an agreement will be terminated by the agency;

The effects of terminating the service agreement, including the conditions under which the agency will pay an additional retention incentive payment for partially completed service; and

Any other terms and conditions for receiving and retaining a retention incentive.

Agencies may not pay a recruitment or relocation incentive to an employee in a position (1) to which the individual was appointed by the President; (2) in the Senior Executive Service as a non-career appointee; (3) which has been excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; (4) designated as the head of an agency, including an agency headed by a collegial body composed of two or more individual members; or (5) in which the employee is expected to receive an appointment as the head of an agency. (See 5 CFR 575.104 and 575.204.)

An agency must terminate a service agreement if an employee is demoted or separated for cause (i.e., for unacceptable performance or conduct), receives a rating of record lower than "Fully Successful" or equivalent during the service period, or otherwise fails to fulfill the terms of the service agreement. In such cases, the employee must repay any portion of the incentive attributable to uncompleted service. (See 5 CFR 575.111(h) and 575.211(h) for a repayment waiver authority.) The employee is entitled to retain any incentive payments attributable to completed service. Exception: When the employee is separated as a result of material false or inaccurate statements or deception or fraud in examination or appointment, or as a result of failing to meet employment qualifications, the employee must repay all recruitment incentives received under that service agreement. The agency is not obligated to pay the employee any outstanding incentive payment attributable to completed service unless such payment was required under the terms of the service agreement. An agency must notify an employee in writing when it terminates a recruitment or relocation incentive service agreement. (See 5 CFR 575.111 and 575.211.)

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